Trade policy in a sovereign Palestinian state : what are the options in a final settlement ?

Joint Authors

Agbahey, Johanes
Grethe, Harald
Luckmann, Jonas
Sadiq, Khalid

Source

Economic Research Forum : Working Paper Series

Issue

Vol. 2018, Issue 1172-1274 (31 Dec. 2018)41 p.

Publisher

Economic Research Forum for the Arab Countries Iran and Turkey

Publication Date

2018-12-31

Country of Publication

Egypt

No. of Pages

41

Main Topic

Economy

Topics

Abstract EN

Economic development and trade performance in Palestine are strongly affected by the unusual links between the Palestinian and Israeli economies.

After years of occupation and sluggish economic growth, the signature of the Paris Protocol was expected to achieve a rapid growth of the Palestinian economy and healthier economic relations with Israel.

However, due to the asymmetry of power between the negotiating parties and the incomplete implementation of the Protocol provisions, the Palestinian economic and trade performances remain low.

Both economic and security conditions call for a renegotiation of the terms of the Protocol.

There is a wide consensus that a final solution to the conflict should provide for a Palestinian state with unambiguous borders, and full control over economic policies.

In line with such a solution, this paper provides an assessment of the impact of different trade policies and exchange rate regimes, using a general equilibrium model that allows for a quantification of the outcomes.

The model is modified to consider a multi-trade-partners set-up, a differentiated treatment for large and small trade shares, and tariff rate quotas.

The paper also addresses the unemployment problem in Palestine and assesses its connections with trade policy.

The results show that a liberal and non-discriminatory trade regime provides the highest benefits for the Palestinian economy, in terms of welfare effects, GDP growth and job creation.

The results also show the impact the exchange rate regime has on the outcomes of trade policies.

Subsequently, a full control over trade and monetary policy instruments will improve the capacity of the Palestinian authorities to address the prevailing unemployment and sluggish economic growth

American Psychological Association (APA)

Agbahey, Johanes& Sadiq, Khalid& Grethe, Harald& Luckmann, Jonas. 2018. Trade policy in a sovereign Palestinian state : what are the options in a final settlement ?. Economic Research Forum : Working Paper Series،Vol. 2018, no. 1172-1274.
https://search.emarefa.net/detail/BIM-957258

Modern Language Association (MLA)

Agbahey, Johanes…[et al.]. Trade policy in a sovereign Palestinian state : what are the options in a final settlement ?. Economic Research Forum : Working Paper Series No. 1172-1274 (Dec. 2018).
https://search.emarefa.net/detail/BIM-957258

American Medical Association (AMA)

Agbahey, Johanes& Sadiq, Khalid& Grethe, Harald& Luckmann, Jonas. Trade policy in a sovereign Palestinian state : what are the options in a final settlement ?. Economic Research Forum : Working Paper Series. 2018. Vol. 2018, no. 1172-1274.
https://search.emarefa.net/detail/BIM-957258

Data Type

Journal Articles

Language

English

Notes

Includes appendices : p. 33-38

Record ID

BIM-957258